Realtor FAQ’s

Realtors

How long does a short sale take?

Ideally, short sales take 60-90 days but realistically they can take as long as 6 months or more. We’ve had a handful of short sales close in less than 30 days! Because short sales require a team effort to facilitate the transaction, it can become time consuming to coordinate all steps necessary to complete.

Can you present multiple offers to the bank on a short sale property?

Typically, banks will review only one offer at a time.  Due to the amount of time it takes to process a short sale it is common that sellers accept offers in back-up position in case the original buyer terminates their offer.  Keep in mind the bank will want to see the strongest offer where buyers are presenting their highest and best purchase price.

I heard my client may get paid for selling their house as a short sale, is this true?

Many lenders and investors offer homeowners incentives upon closing a successful short sale.  Incentives are paid for reasons such as to help cover relocation expenses and foreclosure prevention.  Not every short sale client will be offered an incentive since some investors do not offer incentives.   We will seek out any incentive available and make sure your client is informed of any incentive options.

Do Buyers get discounted purchase price on a short sale property?

As the market is rising, short sale properties are being sold for as close to full value as possible.  Mortgage companies will not accept a short sale that will net them less than they would get as REO property.  Statistically, REO properties are selling for close to market value leading banks to expect short sales to sell for about the same price.  Condition of property should be taken into consideration but realistically the investor will determine their value and acceptable net amount for the short sale.

What are the commission opportunities with a short sale?

In a short sale commissions are typically allowable at 6% but certain circumstances may cause this to be reduced.  Commissions are paid by the mortgage holder and therefore have to be approved as a part of the short sale transaction.

Can a short sale property be sold to a relative?

Probably not. Most lenders will ask all parties to sign an affidavit of Arm’s Length Transaction.  This generally states that the parties to this transaction cannot be related or have a business relationship.

Can a real estate licensee act as a short sale negotiator?

There are strict requirements that a licensee must follow.  An Oregon real estate broker may handle a short sale if he or she does NOT charge any special fees related to the short sale, and that listing belongs to him or her.  If a licensee engages in short sale negotiations and charges a fee beyond a normal real estate commission, the licensee MUST be registered with Department of Consumer and Business Services (DCBS).  A real estate licensee negotiating the short sale for a portion of the commission is also not acceptable without a DMSP license.

How can I determine if NW HomeSavers or any short sale negotiator is authorized to provide these services in Oregon?

Unless you are a licensed real estate agent (negotiating your OWN listing) or mortgage loan originator you must be registered as a debt management service provider to negotiate short sales in Oregon.    NW HomeSavers is a registered Debt Management Service Provider (DM#80066). To verify that a company is registered and is authorized to offer short sale negotiation services please visit:

http://www.cbs.state.or.us/external/dfcs/debt_mgmt.html